Does anybody take taxis anymore? In many places, Uber, Lyft, and other so-called Transportation Network Companies (TNC’s) or rideshare services are the predominant mode of getting from Point A to Point B. Reasons for this include convenience and cost.  But what happens if you’re injured while riding in one of these rideshare services, and who do you look to as the responsible parties? There have been recent major changes in California law that you should be aware of.

In general, determining liability in a rideshare case can be complicated. In addition to trying to determine who is at fault, questions are raised about the driver’s status.  For example, was the at-fault driver an employee of a rideshare company or an independent contractor? In addition, there are frequent issues about the level of insurance coverage. Different coverages may apply depending on whether the accident occurred while the driver was motoring with a passenger, or whether the passenger was in the car when the accident happened. Victims may be forced to file multiple claims or rely on their own health insurance for medical coverage.

To address a few of these concerns, on October 3, 2025, Governor Gavin Newsom signed Senate Bill 371 and Assembly Bill 1340, modifying insurance obligations for TNCs. Senate Bill 371 amends California’s Public Utilities Code to overhaul TNC insurance requirements with the objective of reducing costs for the companies so that those savings can be invested in driver wages.  While this is good news for drivers, there are negative tradeoffs for passengers. Specifically, Uninsured/Underinsured Motorist (UM/UIM) coverage during a ride is reduced from $1 million per person and $1 million per accident to just $60,000 per person and $300,000 per accident. Under these lower coverages, just one emergency surgery after a rideshare accident could exceed this limit. The Bill also provides that the TNC itself, not the driver, must provide this coverage, and it must serve as primary insurance during a trip.

Assembly Bill 1340 complements SB 371 by granting rideshare drivers the right to unionize and collectively bargain, even while remaining independent contractors. It establishes a certification process for driver organizations, requires TNCs to provide driver rosters to facilitate organizing, and protects drivers from retaliation.  

Contact The Law Offices of Earl E. Conaway, III

Navigating liability after a rideshare accident can be challenging, particularly when you’re dealing with multiple insurance companies and legal claims. Insurance companies often try to minimize the settlement amount that you are due, and the legal process is often complex. 

Here at the Law Offices of Earl E. Conaway, III, we can offer the following legal assistance:

• Thoroughly investigate the accident and determine liability
•  Handle all communication with the TNC’S insurance company and other insurers
• Make sure you get full compensation for medical expenses, lost income, and other related losses
• Assist you throughout the legal journey and represent your interests if the case does not settle and instead goes to trial

As personal injury attorneys with many years of experience, you can trust that we will provide you with the best representation possible. Contact us today.